- Equinox Gold released its Q4 and FY2021 results last month, reporting record annual production of ~602,000 ounces at all-in sustaining costs of $1,350/oz.
- While this represented a 26% production growth rate year-over-year, costs increased at a faster pace than output, and are expected to remain elevated in 2022/2023.
- Fortunately, Equinox should see its costs dip closer to the industry average in 2024, but I would still expect Equinox to having industry-lagging costs over the next 3 years.
- Based on what I believe to be a conservative fair value for EQX of ~$8.60, I see limited upside from current levels, and I think there are far more attractive bets elsewhere in the sector.
For further details see:
Equinox Gold: Attractive Growth Profile Offset By Elevated Costs